QUESTION 20 Stark Industries uses a weighted average process costing system. Stark's records show that the company completed 45,000 units during the month and had 6,000 units in process at month-end, 30% complete. Conversion costs associated with the beginning work-in-process inventory amounted to $363,000 and amounts that relate to the current month totaled $1,130,000. If conversion is incurred uniformly throughout manufacturing, Stark's equivalent unit cost is closest to: O A. $25.11 0 B. $29.27 0 C. $31.90 0 D.$22.16 QUESTION 21 Alvin Precision, Inc., an engineering company, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $180,000; direct professional labor hours were estimated to be 15,000; and direct professional labor cost was projected to be $248,000. During the year, Alvin Precision incurred actual overhead costs of $174,000 and actual direct professional labor hours of 12,000. By year-end, the firm's overhead was: 0 A. $30,000 underapplied O B. $30,000 overapplied O C. $24,400 overapplied O D.$6,000 underapplied QUESTION 22 Rogers Leather Goods adds materials at the beginning of production and incurs conversion cost uniformly throughout manufacturing. Consider the data below: Units Beginning work-in-process 20,000 Started in August 60,000 Production completed 55,000 Ending work-in-process, 40% complete 25,000 Conversion cost in the beginning work-in-process inventory totaled $120,000 and August conversion cost totaled $270,000. Assuming use of the weighted-average method, which of the following choices correctly depicts the number of equivalent units (EU) for materials and the conversion cost per equivalent unit? 0 A. EU for Materials: 80,000 Conversion cost per EU: $4.88 0 B. EU for Materials: 75.000 Conversion cost per EU: $4.59 0 c_ EU for Materials: 55,000 Conversion cost per EU: $4.91 0 D. EU for Materials: 80,000 Conversion cost per EU: $6.00 QUESTION 23 Alexandra Corp. uses a process costing system. It adds material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The following selected information was taken from the company's accounting records: Total equivalent units of materials 5,000 Total equivalent units of conversion 4,400 Units started and completed during the . 3,500 period 0n the basis of this information, the ending work-in-process inventory's stage of completion is: O A. 17% O B. 60% O C. 26% O D. 34% QUESTION 24 Hawking Precision Co. applies manufacturing overhead by using a predetermined overhead rate of 75% of direct labor cost. The data that follow pertain to job no. 123: Direct material cost: $210,000 Direct labor cost: $324,000 If Hawking adds a 45% markup on total cost to generate a prot, which of the following choices depicts a portion of the accounting needed to record the sale of job no. 123? O A. Debit sales revenue for $1,126,650 0 8. Debit Cost of Goods Sold for $777,000 0 C. Debit Cost of Goods Sold for $1,126,650 0 D. Debit Finished Goods Inventory for $777,000 QUESTION 25 Tiger, Inc. disposes of under- or overapplied overhead at year-end as an adjustment to cost of goods sold. Prior to disposal, the rm reported cost of goods sold of $1 ,438,000 in a year when manufacturing overhead was underapplied by $23,600. If sales revenue totaled $2,873,000, determine: (1)Tiger's adjusted cost of goods sold (Adj. COGS) and (2) adjusted gross margin (GM). 0 A. Adj. COGS = $1,461,600 Adj. GM = $1,411,400 0 B. Adj. COGS = $1,461,600 Adj. GM = $1,458,600 0 c_ Adj. COGS = $1,414,400 Adj. GM = $1,458,600 0 D_Adj. COGS = $1,414,400 Adj. GM = $1,411,400 QUESTION 26 Dhea worked on fourjobs during its rst year of operations: nos. 501, 502, 503 and 504. A review ofjob no. 504's cost record showed direct material charges of $55,000 and total manufacturing costs of $104,000. If Dhea applies overhead at 150% of direct labor cost, the overhead applied to job no. 504 must have been (round to the nearest dollar, if applicable): 0 A. $29,400 0 8. $82,500 0 C. $32,667 0 D. $69,333
